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PITTSBURGH — Women are now the fastest growing segment of
new- and used-car buyers. Typically, however, women car buyers don't lease nearly
as much as men.  

The consensus among dealers is that women buy new and used
cars, but they infrequently consider leasing. When considering "Should I buy or
lease?" many women are fueled by the beliefs of financial experts like Suze
Orman,  who say "you don't want to lease
your life, you want to own it."

Other women adopt the following real estate rationale: that
car payments build equity and leasing, like renting a house instead of buying
it, simply does not. With women, practicality carries the day.

This idea of ownership — that equity is good, therefore
financing is better than leasing — is one of the biggest reasons women don't
like to lease.

There are more reasons, as well. 

Below are the most common objections dealers receive from
women when presented with the opportunity to lease.

When dealers effectively handle these objections, and
educate women car buyers on the value-added benefits of leasing, they will see
a shift in attitude and new- car leases will rise with this group.

"The idea of ownership is important to me." 

Cars depreciate and then have service repairs and costs.
Most people who lease don't typically pay for brakes or tires because they
don't keep the car long enough to wear them out. Dealers can advise women car
buyers of that, and, if they were to finance a car for five years, they'll most
certainly need tires and brakes plus other repairs.

"I have little or no ownership equity in the leased
car." 

The trade-off for a lower or manageable monthly lease
payment is that there is no trade-in value. It is fairly common that the market
value of a vehicle at lease-end is higher than the purchase option price
specified in the lease contract – which means there is some equity trade value
there.

"I don't understand how leases work, and I'm afraid of
getting ripped off."

Conscientious dealers with a true interest in their customer
will take the time and effort to help a woman buyer understand the leasing
process and the intricacies of the contract.

These contracts can be complex and difficult to understand,
so a dealership's F&I manager should encourage customers to take their time
and read the fine print.

"I don't understand the leasing lingo. I don't know what cap
cost is or what comparison pricing means."

Dealers with integrity will explain exactly what these terms
mean in ways she can understand.  
Dealers who skim over these terms do a real disservice to a buyer and
compromise any future dealings they may have with the dealership.

"I don't want to be making car payments forever. I'd rather
pay the car off early and have several years without a car payment." 

While a woman car buyer may not have a payment anymore,
she'll still be spending more in repairs to keep an older car on the road, with
fewer safety features than newer cars, and more likely to break down.

Dealers can show how a lease provides a safe, more reliable
car at all times, not just when the car is new, and a car protected by
manufacturer warranty and with few repair bills.

"My car payments will be higher." 

Dealers can explain the benefits from a lower monthly
payment, because she only pays for the portion of the car that she actually
uses. 

Depending on a number of factors, monthly lease payments are
considerably lower than a purchase loan for the same car and same term. If she
keeps a car well past the day the loan is paid off, she saves money by buying.
But if she trades in the car before the loan is paid off, the value of the
trade-in is unlikely to cover the remaining balance on the loan.

"I'm worried about any early termination costs. What if I
lose my job?" 

To break a car lease means breaking a contract, which can
result in tremendous fees, as well as negatively impact one's credit
rating.  Dealers can help customers find
other buyers to assume the remainder of their lease, which would take them off
the hook, while gaining a powerfully loyal customer.

Such transfers are now made possible by companies like
Swapalease, Leasetrader and AutoLeaseBreakers, who help car lease owners find
people interested in taking over the payments. The fees for both buyer and
seller are reasonable, and it saves the seller from the early termination costs
which could amount to thousands of dollars.

"I am concerned with excessive mileage charges." 

If a car buyer exceeds the mileage allowance in her lease
contract, she will be charged for the extra miles at a specified per-mile rate,
usually $0.20 per mile. A large mileage excess could result in a hefty charge,
even at a reasonable per-mile rate.

A dealer can help her reduce her exposure if she "buys"
the extra miles she expects to drive at the time of lease signing. She will
avoid the higher end-of-lease charge this way. If she chooses this option, she
will be refunded for any unused miles.

"I am worried about excessive wear-and-tear charges, especially
with the children and multiple drivers." 

If a car buyer returns a leased vehicle at lease-end with
dents or scratches, she will be charged. Dealers can explain to her what is
"excessive" so that she knows to get the car repaired before she returns and
avoid being charged. 

Also, dealers can remind customers that it is best to clean
the car or have it detailed for the best evaluation. This is key to educating
her and having her loyalty remain high with your dealership.

Anne Fleming is president & car-buying advocate at
Women-Drivers.com.



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